Posted by: graemebird | February 21, 2009

John Quiggin:Full Spectrum Failed Analyst.

Further evidence that stupidity is now upwardly mobile. Here John Quiggin advocates a devastating policy scourge that will alter the economic history of this nation if followed. A totally disastrous idiotic policy of red ink to solve a problem caused by……. red ink.

What an idiot. A dangerous idiot. And I think people ought to notice that anyone stupid enough to fall for the global warming racket tends to as well be stupid enough to believe in the Keynesian multiplier. If anyone can think of an exception to this observation let me know. Perhaps you can find some CO2-bedwetter that knows the multiplier is an incredibly stupid concept. Or perhaps you can find a Keynesian who very early came to realise that the global warming racket was straight fraud. It would be interesting to find the exceptions.

“As expected, the government has announced a new round of fiscal stimulus, and the Reserve Bank has cut interest rates by a further 1 per cent, incidentally achieving a further devaluation of the dollar. All of that is likely to stimulate economic activity, but will it be enough and will it be in the right directions.

The magnitude of the package, $42 billion over 2 years, amounts to around 2 per cent of GDP per year, which is pretty modest given the scale of the crisis. But it follows the $10 billion package from late last years, and is virtually certain to be followed by more. I’d be surprised if the deficit is held under 5 per cent of GDP for 2009-10, and deficits are likely to continue for quite a few years. With fiscal stimulus of that magnitude and interest rates near zero, it ought to be possible to keep the inevitable recession to a relatively modest scale, assuming (a big one) that the international financial system is on the road to stabilisation.

The main concern I have with the package is that it continues a heavy focus on construction. That sector has been the first (apart from the finance sector itself) to take a big hit, but it won’t be the last. It’s great building schools, but we need to be hiring teachers, teachers aides and support staff to work in them. As I’ve mentioned before, human services are the most labor-intensive areas of the economy, and also an area that’s been constrained in the era of economic liberalism that is now coming to an end. Hopefully, we’ll see more action on this front, and on direct measures to help the unemployed in the Mark 3 package.

I also have some concerns about the idea of insulating homes. That’s great if it’s additional to the impact of the emissions trading scheme, but not so great if all it does is make it easier for electricity companies to meet their targets.”

And still. With our nation in dire trouble because of the dual influence of these two transparently idiotic idea constellations (Keynesian multiplier and trace-gas-hysteria) not one of our allegedly pro-free-enterprise economists have stepped forward to say that the multiplier is bunk.
Gutless.

Every one of you.

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Responses

  1. “Every one of you.”

    The only sentence I read because it is obvious you are going through a complete mental meltdown these last few days.

  2. What are you talking about Stephen. Are you going to make a coherent argument or are you just going to sit there with egg on your face.

  3. You’re “egg on your face” line is getting extremely worn out.

    I don’t have to make a case, you already did. Posting 7 poorly written rants/stories in 3 days, all of them basically call the rest of the world “dummies”, as if you were some sort of all knowing genius.

    And that my friend, is a sure sign of delusional thinking.

  4. You are just being an idiot mate. I”ve been asking people to justify the fallacious notion of the fiscal multiplier for a very long time. People just show up and say “Graeme. There is a fiscal multiplier” so I wipe their post for lying. I’m monitoring Catallaxy also in my attempts to shame them to justify this really daft notion.

    Its not me that is a genius. Its them that are dummies. Its dummies and compromisers being upwardly mobile. I was aghast at Sinclair testifying to the Senate without attacking the notion of fiscal stimulus outright. So its really beyond me trying to explain why the mulitplier is wrong. Briefly its wrong because it doesn’t change spending. It merely shifts spending to where GDP statistics will pick it up.

    Well I’ve talked about it in the past but stupidtown refuse to justify this notion. You cannot just spill red ink everywhere and hope for magic. Economic renewal must come from business renovation, not from an orgy of red ink and consumer proglifacy. This is something that I thought Hayek at the very least had proven outright. But these guys don’t understand Hayek unless he’s talking non-economic matters like in the fatal conceit. Or the road to serfdom. They run a mile from his capital theory.

    Quiggin is about 53. He ought to have lingered on this question long enough to resolve it. The fact is that in both practice and theory they way to power your way out of recession is to cut spending. Cut spending and perhaps, depending on circumstance, expand the money supply. But always cut spending and try and get people to save.

  5. hahha

    Quiggin at his site accusing Costello of not knowing anything about economics and being lazy.

    This is coming from Quiggin, of course who doesn’t seem to even understand economics. Wonder’s never cease.

    Quiggin, the economist who leaves the ANU for the “better opportunity” at the UQ. Yea, right.

    The head kicker from Queensland is kicking Costello behind his back. He publicly voices opposition to labor market reform and has the temerity to suggest Costello wasn’t a good treasurer.

    What a parallel universe.

  6. Within the sad fact of massive overspending Costello was a very good treasurer. But thats a massive problem this overspending?????

    It always reminds me of the title to this Elizabethan play when I think of politicians that are human beings, basically intelligent and reasonably decent human beings…… BUT STEAL SO FUCKING MUCH.

    Its a play called ‘Tis A Pity She She’s A Whore” or something close to that and the play is by John Ford. Thought to be perhaps the last of the great Elizabethan plays. Its a shitrain of societal collapse.

    We have got to stop letting politicians off the hook when they steal so much. But despite saying that I don’t have it within me to dislike Costello. And I cannot stand Turnbull or Rudd.

    And the fact is that apart from Dennis Jensen perhaps Costello is the only well-known politician qualified to be Prime Minister. The rest of them are fundamentally crazy or not quite up to it.

    Like Hockey is a good bloke. But is he really up to being PM?

    Costello is all we have. Tis a Pity…….

  7. Yea, Costello had his faults, but the Quiggin is actually trying to suggest Swan is better.

    Quiggles is like the inspector Clouseau of the profession.

    He gets most big ideas spectecularly wrong and when someone justifiably lands an easy right hook he sulks and throws a big hissy fit threatening to call his lawyers on his 24/7 defamation service.

    He sticks his silly looking head out, challenges someone to hit and then cries foul when someone lands one on his jaw, crying and howling like a big school girl. I’ve never seen anything like it.

    Watch, he’ll go sulking when he reads it for a few days.

  8. Well I wouldn’t say that really. They are all hopeless in economics in this country. The allegedly free enterprise guys as well. Quiggins basically a closet commie. Yet sometimes he gets one or two things right. And our free enterprise (so-called) guys are so appalling they can actually make Quiggin look good.

  9. Seriously, name one thing Quiggin got right? The water issues? He’s being working on that for years and it’s worse than it’s ever been. In fact it’s got worse since he worked on it funnily enough.

    He’s an alarmist when it come to AGW and thinks (I’m sure) that Southern Australia will be a permanent drought area. However Quiggles opposes desal plants and catchment expansion so he’s basically a believer in rationing.

    He also wants to ration emissions and one time I read that he thought it would be a good idea if the a damaged freeway that led into Brisbane was never reopened and people would use public transport.

    Can you imagine the boring world he would create. Mao’s China would be more interesting.

    Meanwhile the idiot has been glomming off the government most of his life.

    As I asked, name one thing he’s got right.

  10. He’s for nationalizing of the world’s banking system. Mention nationalization and he’s like a male dog who figures the female dog walking beside is on heat. He gets orgasmic over thoughts of government taking things over. He’s never happier than when he’s dsicussing this stuff.

    I wonder if it could be registered as some form of medical condition.

    Quiggler syndrome.

    1.Lots of free time manifests in delusional thinking including related complaints like the Rothman’s syndrome which is a condition causing patients to think a political opponent is a smoker who is peddling cigarettes.

    2. Flooding syndrome.

    Quiggles once said he was afraid of drowning as a result of AGW. This could be signs of aquaphobia and usually dealt with in group sessions slowly introducing the patient to water.

    There’s lot to work with here.

  11. Quiggin also believes that increasing taxes and/or borrowing money to increase “human services” will somehow lead to “stimulus”. More magic pudding economics.

  12. His 94 book was “superb” in a George Costanza way. In it he suggested full employment was a relic of the past and that the country would have to be content with “naturally” high levels of unemployment in the future. His solution? Mountains of money spent on ” people services” thereby moving people on the public payroll.

    Quiggs was suggesting the not slow but very speedy South American prescription to disaster. Not to put it too lightly if we had followed his expert advice he would have turned us into Argentina in a decade or shorter.

    As always “Prefossor” Juan Quiggler’s timing is extraordinary. A couple of years later the nation had the largest, most enduring economic expansion in its history.

    Now he’s calling Costello a lazy sloth. I’m not suggesting we credit Costello with anything other than he didn’t fuck things up, as all I want to do is apply Juan Quiggler’s standards. If indeed the Costello era was a disaster Juan would have been playing that “swan” song from every Hacienda in the country. So applying Juan’s standards you would have to say that Costello is therefore the country’s finest treasurer as every indicator moved up during his time big time…. much to Juan’s displeasure.

    I think he should be referred to as Juan Quiggler from now to demonstrate his kinship to failed South American statist economics.

    I’D HAVE TO SAY THAT YOU’VE MADE A GOOD CASE THAT QUIGGIN IS A HARMFUL QUACK. BUT THESE DAYS I’M MORE UPTIGHT ABOUT THE ALLEGED RIGHT-WING FALLING FOR THE MULTIPLIER AND FAILING TO VIGOROUSLY PRESCRIBE MASSIVE SPENDING CUTS.

  13. ” Juan Qiggler”

    What a great name for him.

    I USED TO CALL HIM QUISLING. BUT WE NOW SEE OF COURSE THAT THE ALLEGED RIGHT ARE EVEN BIGGER TRAITORS.

  14. THE POSTER MERELY ASSERTED THAT THE MULTIPLIER EXISTED. THIS IS A LIE. AND MAKES ME THINK THAT THIS MAY BE MARK HILL. BECAUSE EVEN JASON SOON MIGHT NOT BE THIS IDIOTIC.

  15. We can see the junk science of the multiplier believers. Not being able to argue it exists they simply assert that it does. And then quote people who have asserted a number for the multiplier in a non-transparent way.

    But as I have pointed out many times they are simply fucking up by not realising that fiscal policy boosts GDP, not be increasing spending, but simply by shifting it to where it is picked up by GDP.

    This is obviously the case. And you wouldn’t think that people could ever be so stupid as to doubt it.

  16. I’VE READ BARRO’S ARTICLE YOU MORON. AND NOWHERE DOES HE PROVE OR JUSTIFY THE EXISTENCE OF THE MULTIPLIER. THINK FOR YOURSELF MARK HILL YOU MORON. JUSTIFY IT OR ADMIT YOU ARE WRONG. BARRO IS NO AUTHORITY ON ANYTHING.


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